Musk Doubles Down on New Model as Competition Picks Up

Elon Musk speaks at the B20 conference

B20 Indonesia

Elon Musk has said it before but will repeat it whenever asked. While virtually attending the B20 conference in Indonesia, Musk was asked about creating a smaller, more affordable car. The moderator suggested it be called the Model I for India or Indonesia. It’s a reoccurring question, but with competition also targeting a cheaper price point, Tesla must find a way to get there.

Musk responded to the question familiarly, “I can’t speak too much to the future of Tesla product development, except to say that we do think that making a much more affordable vehicle would make a lot of sense and we should do something.”

It’s something Tesla will have to do. Volvo’s CEO Jim Rowan told Automotive New Europe that EVs should be at price parity with gas cars in a couple of years.

The manufacturer has also teased a small EV that it sees as entry-level for consumers. It’s set a goal of producing 600,000 battery-powered vehicles by 2025. So far this year, it has made 40,500. Therefore, the new small vehicle the company is talking about would have to be a price point that would move many cars. Rowan said, “city car aimed at a younger demographic who can subscribe to it and make it their first Volvo.”

Elon Musk at the B20 Conference

Tesla has already brought down the price of producing electric vehicles, but Volvo says it can do better. Volvo said during its Capital Markets Day presentations that it plans to have battery pack costs down to less than $100 per kilowatt hour by 2025-26. A recent tear-down of the Tesla Model 3 pack, overseen by analysts from UBS bank, showed a cost of $131 per kWh.

During the third quarter earnings call, Musk said that Tesla’s new vehicle development team was already working on the next platform and would incorporate everything the company has learned from Models S, 3, X, Y, Semi and Cybertruck.

He also said that the target was to create a 2-for-1, as in producing two cars using the same effort it currently takes to build one. “It will be smaller, to be clear. But it will, I think, certainly become, certainly exceed the production of all our other vehicles combined.”

There have been rumblings of a Model 2, a vehicle that would cost around $25,000, for a few years around Tesla.

With the company having a hard time keeping up with orders for the Model 3 and Model Y, that didn’t seem necessary. However, Musk could also be alluding to the company's upcoming Robotaxi, or possibly a platform will be shared by both vehicles.

The company must address the need for a cheaper vehicle with the competition catching up and targeting areas where Tesla doesn’t currently offer products.

Tesla Holiday Update Wishlist - Tesla App Edition

@niccruzpatane

So, with Halloween all squared away, the next big holiday coming up is Christmas. Each year, Tesla releases a big Holiday update packed with features. Last year’s update included some awesome features, including alternate routes, the Vision upgrade for Park Assist, Speed Cameras and Traffic Light icons, and the Automatic Blind Spot indicator, among others.

We already know that update 2024.44 - the Holiday Update Branch - is coming with Blind Spot Monitoring while Parked, Supercharger Improvements, and more. But, we’ve got a ton of good ideas that we hope will make the list, so put down your pumpkin spice, and grab your egg nog. It’s the holidays, and it’ll be Cybertruck’s first Christmas, so let’s celebrate!

Apple Watch App

First up—the Apple Watch app. This has been a highly requested feature over the past couple of years, and it looks like Tesla is listening. Tesla has apparently already begun development to support the Apple Watch in app update 4.38, so we’re expecting this to arrive as part of the big Holiday update. We’d love to see an equivalent app for Android-based watches, too.

Phone Left on Charger Alert

It’s easy to forget your phone inside of the vehicle, especially if it’s on the phone dock. A simple app alert that a phone has been left in the vehicle would be really useful. Tesla could potentially even tell the difference between a driver’s phone and a passenger’s phone, depending on the vehicle’s profile being used or which doors were open and closed.

Either way, just receiving an app notification if a phone is left in the car would be really useful, especially since your phone is your car key.

Light Show Support

Tesla Lightshows are great, but they could be made even better with Tesla app support. At the very least, it’d be great to be able to start/schedule or stop a light show from the app.

To really make light shows shine, Tesla could add the ability to create a light show directly from the app. Right now creating a light show involves using the open-source app xLights on a computer, so a simplified version of it running in the app would make it accessible to a lot more users.

Precondition Battery Button

Similar to an in-vehicle preconditioning button for 3^rd party chargers, the Tesla App should also have a button to precondition the battery. This will make it easy for users, especially those who don’t have home charging – to get their vehicles ready for DC Fast Charging before departing.

Garage Door Controls

Tesla owners with HomeLink can control their garage doors directly from the vehicle. However, the Tesla app currently only allows users to open the first programmed garage door and doesn’t give the user access to any of the other programmed doors. Adding the option to choose which garage door to open via the HomeLink button would be a valuable addition—especially useful when paired with Actually Smart Summon.

Drive Stats

While Tesla already records and displays charging sessions in the app’s Charge Stats section, it’d be really helpful if Tesla also added the ability to record drives. That way, you could easily track how much your vehicle was driven on a particular day, week, or over the course of the year.

If you have any other suggestions, let us know in our forums. Who knows, some Tesla product managers may even be listening.

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Tesla Adds Interest-Free Payment Plan to Tesla Shop - FSD Payment Plan Next?

Not a Tesla App

Tesla has added payment plan options to its shop items for the first time. They’ve partnered with Klarna, a deferred payment provider, to spread the cost of items across multiple payments. For now, this appears to be limited to the Tesla Shop in the United States—no support for other regions quite yet.

Payment Options

Klarna’s primary payment option allows buyers to get 0% APR for 6 weeks, with 4 payments. The payment schedule is essentially one payment every two weeks for whichever product you buy - enabling you to buy now, and pay later with 0% financing.

For example, the payment schedule for the $420 Wall Connector is evenly divided into four portions. Of course, you’d also have to pay for shipping and taxes, both of which will be included in your first payment.

For some of Tesla’s more expensive Shop options - like the Cybertent, this could be a fantastic means for some owners to pick up something more expensive without having to worry about interest charges on their credit card.

Klarna also offers some other payment schedules, which do have interest. While these are far more expensive and are more like credit cards, they still provide buyers a means to buy now and pay over time. These are all open loans as well, so you can pay them down at a faster rate, thereby reducing the overall interest.

FSD Payment Options?

We’d love to see an equivalent payment option available for Tesla’s FSD purchase, which is currently $8,000, even if it's bought after the vehicle purchase. The high upfront cost is likely one reason why Tesla’s FSD subscription is so popular.

It’s likely that purchasing FSD is much more popular at the time of vehicle purchase, as owners can roll the cost of FSD into their financing rather than paying the full $8,000 later on.

IPO Filing

Interestingly enough, along with today’s news that Klarna is working with Tesla, Klarna has also filed for an IPO in the United States. It is one of the first financial tech (FinTech) companies to file for an IPO in 2025 and, interestingly, one of the first European companies to conduct an IPO in the United States.

For those who trade in the financial sector, this will be one to watch—Klarna was valued at around $46 billion in 2021 and is now valued at approximately $15 billion. Partnering with a large and well-known brand like Tesla could uplift Klarna, but that’s all financial speculation.

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